When people fall behind on mortgage payments, they usually panic and begin to take drastic actions to avoid a foreclosure. Unfortunately, such desperate actions can result in falling victim to foreclosure scams that make the situation even worse. Homeowners around the country are being duped by “loss mitigation,” “mortgage negotiators,” and similar companies or individuals that claim to help borrowers avoid foreclosure. Unfortunately, many of these offers are foreclosure scams purposefully preying on stressed homeowners.
Beware Foreclosure Scams!
Since foreclosure scams involve entire financial profiles, complications can lead to difficulties such as bankruptcy. In order to know how to avoid foreclosure scams, it’s crucial to know what to look for:
· Phantom counselors. These “specialists” charge excessive fees, claiming that they can help delay the foreclosure process or even bankruptcy. Be wary every time you give out your financial information.
· The buy back. Some scam artists convince homeowners to sign over the deed to their home. Instead of initiating a buy-back as possible, the scam artist is able to walk away with the equity while the homeowner is evicted.
· The switch. Foreclosure scam artists will craft fraudulent documents for a new loan, but are actually getting your signature to give away ownership of your home. You would still owe mortgage payments, but would no longer live in the house. This is one of many situations that could lead to a bankruptcy down the road.
To avoid foreclosure scams, it’s crucial not to sign any contracts under pressure. Furthermore, always have a lawyer review any documents that have something to do with the ownership of your home. Never ignore warning signs and be sure that any deals that you seal are confirmed in writing. If a contract has blank lines throughout the document, ensure that the blank lines are filled before you sign it.
Further, seek help from a Fort Worth bankruptcy lawyer. They can help you spot the signs and even deal with the threat of an impending foreclosure or other debt problems.